Trading Profit: The difference between the income received from an organisation's normal activities and the expenditure it incurs in operating.
Retained Profit: The part of a firm's profit that is reinvested in the business rather than distributed to shareholders.
Asset: Any item owned by the firm
External Sources of Finance
Ordinary Share Capital: Money given to a company by share-holders in return for a share certificate that gives them part ownership of the company and entitles them to a share of the profits.
Loan Capital: Money received by an organisation in return for the organisation's agreement to pay interest during the period of the loan and repay the loan within an agreed time.
Debenture: A long-term loan made to a business at an agreed fixed rate of interest and repayable on a stated date.
Bank Loan: A sum of money provided to a firm or individual by a bank for a specific, agreed purpose.
Bank Overdraft: When a bank allows an individual or organisation to overspend it's current account in the bank up to an agreed (overdraft) limit and for a stated time period.
Profit Centre: An identifiable part of an organisation (e.g. a department, a product or a branch) for which costs and revenue (and thus profit) can be calculated.